Demand for silicon metal raw materials remains steady, with petroleum coke prices mainly declining in the short term [SMM Weekly Review of Silicon Metal Raw Materials]

Silica: This week, the silica market continued to experience weak demand, with prices declining in some regions. Affected by the recent downturn in the silicon metal market, although the rainy season is approaching in south-west China, most silicon metal plants have adopted a wait-and-see attitude, lacking confidence in the subsequent market development and showing weak willingness to resume production. The operating rates of silicon metal plants in other regions also remain low. Purchases of silica are mainly for small-scale just-in-time procurement, with a strong sentiment to drive down prices. As a result, prices in some regions have fallen again. Currently, the mine-mouth price of high-grade silica in Inner Mongolia is 320-350 yuan/mt. The mine-mouth price of low-grade silica in Yunnan is 320-340 yuan/mt. The mine-mouth price of high-grade silica in Guizhou is 280-320 yuan/mt. The mine-mouth price of high-grade silica in Hubei is 350-380 yuan/mt.

Silicon coal: This week, the silicon coal market remained in the doldrums. Currently, the silicon coal market is still under significant pressure. On the demand side, as one of the main raw materials for silicon metal, affected by the sluggish silicon metal market, the consumption cycle of silicon coal by silicon metal plants has lengthened, leading to an overall contraction in demand. Purchases are mainly for just-in-time restocking, with a strong sentiment to drive down prices. On the supply side, competition among regions is fierce, and suppliers are still under significant pressure. In the short term, the silicon coal market is expected to remain weak. Currently, the price of non-caking silicon coal in Xinjiang is 690-730 yuan/mt. The price of silicon coal (mixed) in Gansu is 960-980 yuan/mt, and the price of granular coal is 1,120-1,140 yuan/mt. The price of silicon coal in Ningxia is 950-970 yuan/mt, the price of granular coal is 1,190-1,210 yuan/mt, and the price of granular coal (with 5-6% ash content) is 1,360-1,380 yuan/mt.

Petroleum coke: During the week, affected by the decline in low-sulphur petroleum coke prices, the prices of mid and high-sulphur petroleum coke weakened, with average sales being ordinary. According to SMM data, the average price of petroleum coke at local refineries was approximately 2,412 yuan/mt, down 0.9% WoW. There was no significant fluctuation in the transactions of Formosa Plastics petroleum coke during the week, with poor downstream buying sentiment. The current market price is between 1,150-1,200 yuan/mt. Overall, downstream buying sentiment in the petroleum coke market remains cautious, and petroleum coke prices are expected to continue to decline in the short term.

Electrodes: This week, electrode prices came under renewed downward pressure. On the cost side, since May, the prices of electrode raw materials have continued to decline, with a drop of approximately 700-1,000 yuan/mt, providing weak support for electrode prices. On the demand side, the operating rates of silicon metal plants have remained low, with weak demand. As a result, there is cautious procurement of raw materials, with a strong sentiment to drive down prices, and purchases are mainly for just-in-time procurement. On the supply side, due to weak downstream demand, producers are experiencing slow destocking and significant inventory pressure. As a result, under multiple pressures, electrode prices have been adjusted downward again. The quoted price for ordinary power carbon electrodes with a diameter of 960-1,100mm is 6,500-6,700 yuan/mt, down 800 yuan/mt week-on-week. The quoted price for electrodes with a diameter of 1,272mm is 6,900-7,100 yuan/mt, down 900 yuan/mt. The quoted prices for ordinary power graphite electrodes with diameters of 960-1,100mm, 1,272mm, and 1,320mm are 9,900-10,100 yuan/mt, 10,900-11,100 yuan/mt, and 11,900-12,100 yuan/mt, respectively, all down 1,000 yuan/mt. In the short term, the electrode market is expected to remain weak.

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